12-18-2024
The accounting industry is facing a seismic shift. About half of all the United States 1.3 million accountants hold an active CPA license, reports Zippia, a job search platform. In August 2024, the National Association of State Boards of Accountancy (NASBA) reported about 672,000 active CPA licenses in the US. Yet the number of college graduates completing the requirements is declining, while the population of CPAs are approaching retirement. The gap opens up opportunities for anyone eager to become a CPA.
Certified public accountants (CPAs) are licensed professionals who meet advanced practice standards and have elite technical accounting abilities, which they supplement with their analytical insights, advisory services and financial recommendations. CPAs are in strong demand among recruiters and by the public, seeking tax and auditing services.
Upon becoming a CPA, accountants gain a higher earning potential. In June 2024, Payscale listed $98,000 per year as the average CPA accountant's salary. Meanwhile, Payscale reported an average salary of $79,000 for professionals with only a bachelor's degree in accounting, a 24% difference in earnings.
Becoming a CPA requires extensive technical expertise, a CPA license opens doors at major national and international accounting firms. It signals authority and aptitude, giving others confidence in your work abilities and opening up a variety of growth opportunities — in turn, leading to high-ranking accounting jobs in management and executive positions.
Having earned a CPA license, individuals can fill roles like auditors, consultants, managers and chief financial officers, in public, tax and corporate accounting. On the other hand, those without CPA licenses have limited opportunities in entry-level accounting roles like finance and data-based analysis. Essentially, those with a license gain access to senior-level roles and unlock the higher earning potential that provides them recognition as an expert in the field. Those without a license may have fewer opportunities in public accounting and auditing and will be far less likely to access to senior roles.
Learn more about accounting opportunities at the Daniels School of Business.
Explore the MS Accounting program.
To meet the CPA accounting requirements, you need a four-year undergraduate bachelor’s degree, two years of accounting work under a CPA, and up to 18 months to take the test successfully — explains Becker Education. With 120 credit hours earned for your undergrad degree, the final 30 credit hours earned in a master’s will fulfill your requirement and further refine your specialized skills.
While exploring opportunities to further your profession in accounting, Becker Education explains that you may come across two similar CPA pathways: a certificate and a license. You must pass the CPA exam to earn a CPA certificate and meet your state’s requirements. However, to earn a license, you must pass the exam, have relevant work experience and complete Continuing Professional Education (CPE).
These CPA-based pathways also differ in the kind of legal rights they provide. A license enables you to sign tax returns, own a CPA firm, and represent clients in court — a certificate restricts you from these opportunities. Moreover, certificates do not need to be renewed, while licenses do.
The most important part of succeeding on the CPA test is understanding its format. Becker explains that the CPA exam is a four-section, 16-hour test, with each section roughly four hours long. As of 2024, the exam now includes three new core sections: Auditing and Attestation, Financial Accounting, and Taxation and Regulation. Test-takers must also pass one of the three discipline sections: Business Analysis and Reporting, Information Systems and Controls, and Tax Compliance and Planning. It also now puts greater emphasis on emerging technology in accounting services.
Remember, the CPA exam is a marathon and not a sprint. Set your desired timeline to pass the exam and build a schedule that allows you to prioritize all parts of your life. Make sure to factor in unforeseen circumstances, like retakes, to ensure you complete the test within the 30-month timeframe and do not lose credit for any portion you passed. When considering your timeline, build a schedule around your existing studying habits as opposed to creating new ones — familiarity is key to success!
Another critical step is finding the right review course. For example, Becker’s CPA Exam Review course has a reported pass rate of 94% and has helped candidates feel supported and prepared in their exam process. As a student at the Daniels School of Business, you can even access Becker’s FastPass free of cost. Through Becker, you can understand how to answer the different types of questions and prepare specifically according to every section.
"The curriculum in the Daniels program is directly tied to the information I will need to know when taking my CPA exam, which is the reason the majority of my program is getting their MSA. I feel that the information I am learning has a clear correlation with my professional career." - Emily Robinson MSA '24
With an 88% first-time pass rate and a 100% pass rate within two years of graduation, Daniels School of Business Master of Accounting (MSA) grads are well-prepared for the CPA exam. The program also enhances their analytical skills, improves their written and oral communication, and develops their critical thinking and leadership abilities. In addition, Purdue's MSA program specifically prepares students for the exam. Faculty at the Daniels School also help develop official test materials, allowing you to learn from the best.
As specialties in accounting become increasingly data-driven with a greater emphasis on cloud computing, blockchain technology, AI and machine learning, this 30-credit hour program focuses on enhancing technical skills alongside CPA preparation to instill the skills that accounting employers seek.
If you would like to receive more information about pursuing a business master’s at the Mitch Daniels School of Business, please fill out the form and a program specialist will be in touch!
